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Chapter 9: Q 90. (page 609)

Restaurant power problems Refer to Exercises 86 and 88

a. Explain one disadvantage of using α=0.10 instead of α=0.05 when

performing the test.

b. Explain one disadvantage of taking a random sample of 50 people instead of 30 people.

Short Answer

Expert verified

Part (a) There is the most likely to have a type I error.

Part (b) There is more time consuming and costly to collect the data.

Step by step solution

01

Part (a) Step 1: Given information

α=0.05H0:μ=$85,000μ>$85,000μ=$86,000
02

Part (a) Step 2: Explanation

Type I error: Reject the null hypothesis H0, once the null hypothesis H0is true.

αShowing the probability of a type I error.

If you increase α=0.05toα=0.10 the likelihood of making a type I error increases, and you're more likely to make one, which is a negative.

03

Part (b) Step 1: Explanation

If the sample size is increased from 30to 50persons, collecting data for the 50people will take longer and cost more money than collecting data for the 30people (as there are about twice as many potatoes about which we need to gather information.).

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Most popular questions from this chapter

A government report says that the average amount of money spent per U.S. household per week on food is about \(158. A random sample of50 households in a small city is selected, and their weekly spending on food is recorded. The sample data have a mean of \)165 and a standard deviation of \(20. Is there convincing evidence that the mean weekly spending on food in this city differs from the national figure of \)158?

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searching for a good location. From research you have done, you know that the mean income of those living near the restaurant must be over \(85,000to support the type of upscale restaurant you wish to open. You decide to take a simple random sample of 50people living near one potential location. Based on the mean income of this sample, you will perform a test of

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Proposition XA political organization wants to determine if there is convincing evidence that a majority of registered voters in a large city favor Proposition X. In an SRS of 1000registered voters, 482favor the proposition. Explain why it isn’t necessary to carry out a significance test in this setting.

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